I figured it out.
What you will need is to either create two hardrive storage for the VM or use a USB flash drive. The 2nd hardrive or flash drive will be used to store the profile that is required by Installation Manager. Installation Manager will not install zeroshell on the same hardrive/partition that the profile is stored on.
1. When the profile is created and the system has come back online from the reboot go ahead and start ‘Installation Manager’ or ‘inst-manager’ from the shell prompt.
2. Installation Manager will ask the location where to install zeroshell.
3. Follow the steps and after the reboot, zeroshell will be running off the hardrive.